Last year a game which portrayed the country as a base for terrorists caused an outcry among Chinese gamers.

Covert attacks

Project IGI2 by Oslo-based Innerloop Studios was published by British firm Codemasters about a year ago.

Generals also caused uproar in China

The game is a first-person shooter in which a former SAS soldier undertakes a number of covert missions across the world, including China.

These intelligence and sabotage missions have angered the Chinese, on the grounds that they smear the country's image.

Officials said all domestic copies of the game would now be confiscated.

They also said the game's publishers, producers, and sellers in China would be punished for violating laws which prohibit the introduction and publication of games that hurt the country's national dignity and interests.

Big money

This is the second time that a computer game has ruffled feathers in China. Last year, a game by Electronic Arts called Command and Conquer: Generals upset the Chinese.

In the game, a group of international terrorists set up base in China and fired missiles at the capital, Beijing.

Computer games have become a booming industry in China, largely fuelled by the popularity of the internet.

Some 14 million people regularly played online games in China, according to the China Games Publishers Association.

Analysts expect the market for online gaming in China to be worth $356.8m by 2007.